India Leads Global Steel Demand Growth, Projects Continued Expansion

India has been identified as the primary driver of global steel demand growth since 2021, with significant growth projections for the sector through 2030-31. The Ministry of Steel emphasized the country's crucial role in the global steel market and highlighted major milestones in steel production and consumption.

India has emerged as the leading global driver of steel demand growth since 2021, according to a statement from the Ministry of Steel on Friday. The ministry noted that the World Steel forecast indicates a global steel demand rebound of 1.7 per cent this year, reaching 1,793 metric tons. By 2025, this demand is expected to grow by an additional 1.2 per cent, reaching 1,815 metric tons.

The ministry emphasized that India's steel demand is set to continue its upward trajectory, with an 8 per cent growth projected over 2024 and 2025. This growth is attributed to ongoing expansions across all sectors that utilize steel, notably from sustained infrastructure investments.

In the first quarter of FY25, the steel sector set a new benchmark with crude steel production of 36.61 million tonnes, finished steel production of 35.77 million tonnes, and finished steel consumption of 35.42 million tonnes. The Ministry of Steel highlighted that the sector is crucial to industries such as construction, infrastructure, automotive, engineering, and defence. India has risen to become a major global player in steel production and consumption, being the world's second-largest producer of steel as of 2023.

The per capita consumption of steel in India has doubled from 59 kg in 2013-14 to 119 kg in 2022-23. Looking ahead, the National Steel Policy projects substantial expansion in the sector, with expectations of achieving a total crude steel capacity of 300 million tons and finished steel production of 230 million tons by 2030-31.

(With inputs from agencies.)